Tribune Co.'s fourth amended plan of reorganization confirmed by court

By Jim Witters

Wilmington, Del., July 23 - The Tribune Co.'s fourth amended plan of reorganization received confirmation on July 23, according to documents filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation clears the way for the transfer of ownership to group that includes senior creditors Oaktree Capital Management, LP, Angelo Gordon & Co., LP and JPMorgan Chase Bank.

The ownership group hopes to obtain $1.1 billion of new financing and a $300 million line of credit.

The order also opens the door for the necessary approvals from the Federal Communications Commission to transfer its broadcast licenses to the new ownership group.

Tribune representatives previously said they believe the company could exit bankruptcy by the end of the year, with about $7 billion of recoveries for creditors.

The confirmation came after final revisions were made to reflect various resolutions among the parties. Those revisions were filed with the court on July 20.

The issues not resolved were overruled by judge Kevin J. Carey in his 47-page order.

The fourth amended plan, known as the DCL proponents plan, was proposed by the Tribune debtors, the company's official committee of unsecured creditors, Oaktree Capital Management, Angelo, Gordon and JPMorgan Chase

The plan represents a revision of the plan rejected by Carey in October and was the subject of a three-day confirmation hearing in June.

Tribune, a Chicago-based media company, filed for bankruptcy on Dec. 8, 2008. Its Chapter 11 case number is 08-13141.

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